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Tax News

Advice for exporters if 'no deal' Brexit

Sep 04, 2018

We have already examined matters that must be addressed by those importing goods to the UK if there is a 'no deal' Brexit (See previous articles). In this article we will look at the impact this would have on UK businesses exporting goods to the EU, currently
known as intra-EU dispatches.

A no-deal Brexit would see tariffs imposed on goods that the UK sends to the EU.

It is also important to remember that the deadline for the UK and EU to make a deal is much closer than March 2019 as any agreement will need to be ratified by both the UK and the EU before that date. If the UK leaves the EU without any agreement in place
businesses exporting goods to the EU will be required to follow customs procedures in the same way that they currently do when exporting goods to a non-EU country.

If the UK leaves the EU without an agreement, VAT registered UK businesses will continue to be able to zero-rate sales of goods to EU businesses and will no longer be required to complete EC sales lists. However, EU member states will treat goods entering
the EU from the UK in the same way as goods entering from other non-EU countries. Associated import VAT and customs duties will become due when the goods arrive into the EU.

A 'no deal' Brexit would also mean the end of special VAT 'distance selling' rules for the sale of goods to EU consumers and changes to the UK VAT Mini One Stop Shop rules.

UK businesses that currently trade within the EU will find this a big step change and are likely to require a significant amount of assistance to put the right systems in place to deal with the changing circumstances. If you already export to the EU or are
actively seeking out new markets for your goods in the EU, please contact us as we can help you begin the necessary contingency planning.